The New Leviathan Blog

The efficient State at its own service

KBC, this leading Flemish bank, is definitely lacking in luck. Unless it is the victim of a corporate culture that is too pragmatic, on the profit side, and too tight, on the ethical side? Still, she was once again indicted as a legal person on Tuesday, “La Libre” learned. It is a question of money laundering, forgery and use of forgery as well as tax fraud… The case dates back to 2005. At that time, two people who, around ten years previously, reported to the CPAS, made a fortune. Without doubt “from 14 to 15 million euros”, the spokesperson for the Brussels public prosecutor’s office, Estelle Arpigny, confirmed to us on Thursday. Money may be dirty, at least black: if, in a certain environment, we talk about drug trafficking, we know in any case that these people act as real estate agents. “But without status, or registration for VAT or in the commercial register. And without declaring any professional income ,” continues Ms. Arpigny. The fact remains that, in 2005, they were interested in a building worth, roughly, 2 million euros. And sold it, receiving a commission of 10 pc. But the building belonged to a company – it was therefore necessary to transfer shares – and their “status” prohibiting them from receiving this commission in the normal way, a stratagem was developed. With the help of an important Brussels lawyer. The endorsement of certain parties. And the blessing of the KBC – even though it is legally required to denounce this type of fraudulent operation.
In any case, this is what financial investigating judge Michel Claise and his investigators discovered, at the end of research which led, on Tuesday, to several indictments. That of the lawyer, who carried out the three agreements under private signature which made it possible to pass the property from one to the other with the transfer of money… non-existent. That of three other people, including the two “real estate agents”. And that of the KBC, which observed and allowed a false sale with false capital gain – in reality the commission paid to the said “real estate agents”. (…) The impression arises that, rather than attacking justice (as with a complaint from its members against ex-judge Leys), the KBC, certainly presumed innocent, could question its practices (La Libre Belgique 2007).

This article has chosen to essentially attack KBC, a Flemish bank… In the absence of truly precise information, it is difficult to make anything other than assumptions when reading it. However, we can note a series of judgments that miss the mark: “people reporting to the CPAS” (this is not shameful), “dirty, even black money” (to be proven, and this is not here’s the problem), “fraudulent operations” (this is a term intended to be infamous, but selling a building with a 10% margin seems entirely reasonable, contrary to the practices of many registered developers…). In fact, what the accused are accused of is mainly for not having “status” (generously granted by the government with the underlying aim of tax control), nor making a tax declaration (the most serious crimes are those against the State…).

The basis of the case therefore appears to be the reprisals of the State against citizens who claim to live without it – reprisals which are carried out in criminal law, as in other recent cases of alleged “tax fraud” in France. Which is shocking, because the State could claim its due in civil proceedings or before the administrative courts as well as reparations, like other social actors; from there to deeming criminals and depriving of liberty those who oppose him… Given the cancerous development of the State and the resulting weakening of society, it has become necessary to ignore it more and more more so that he becomes a victim of his own inertia. Tax evasion today, in a context marked by the enormity of forced levies and their final misuse, is much less shocking than if this State were truly a reflection of the community.